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Canceled by your California Car Insurance Company

In California, the car insurer can cancel your coverage after 30 days, if you don't pay or give them false information.

Most often, the California auto insurance company cancels you if you've gotten tickets, DUIs or accidents. If your insurance company elects to terminate your coverage, you are entitled to receive a written notice at least 10 before the effective cancellation date concerning nonpayment or 20 days for all other reasons.

If you're canceled, you are supposed to get written notice 30 days beforehand. If you don't get the notice, your California car insurance policy will remain in effect for 30 days beyond when the company sends the required notice. Make sure they have your current address.

Material Misrepresentation

Always making late payments can invalidate your car insurance policy. In addition to fraud, misrepresentation can also result in a canceled policy. Misrepresentation has to be significant. If you misprinted your middle initial, that is an error, not misrepresentation. Purposely misleading the insurer in an important way would be lying about your address, or saying the car is in a garage. When you apply, the insurance company rightly assumes you are telling the truth, but verifies your info anyway. During that verification, some violations or accidents may pop up.

Fraudulent claims

If your file a fraudulent claim or overstate your loss, the insurance carrier will probably want to get rid of you. Remember, insurance is meant to protect against loss, not make you a profit. If claims turn into a profit center, the carrier will shortly go out business.

Lending out your car

In California, car insurance companies can cancel your policy if you let other non listed drivers borrow your car without notifying the auto insurance company. It's usually a bad idea to lend out your car since the other person is unfamiliar with it and does not care if it breaks down, since they aren't paying for it. Can you say Teenagers? The insurer will either send you an excluded driver form, raise your rates, or cancel you.

Bad Drivers Beware

Have you gotten some speeding tickets lately? Have you been under extreme stress or undergoing major life changes? Divorce or death in the family? If you are going through a tough time, you might start using drugs or alcohol. In California, when the car insurer finds out you've been convicted of DUI, they may decide you are no longer insurable. or they will raiser your premiums, then cancel you if you incur more violations. Accidents Nothing will get you canceled faster than an at fault accident. An insurance company has the right to cancel the policy based on a high number of claims.

Type of Vehicle

Maybe your insurer decides they do not like your high performance car anymore. Insurers adjust their risk models constantly. It's part of running a for profit business. But seldom are people non renewed for the with the wrong type of car, since the carrier already accepted your risk earlier.

Non renewal

When a company decides to non renew your policy, they end the relationship when your policy is over. You must get a reason why your policy faces non-renewal. If you do not receive the notice at least 45 days before your coverage ends, the current policy will remain in effect for 45 days after the date the notice is sent. Both you and the company always have this right. It's often the nature of business. Companies lose customers and gain customers. Don't take it personally.

Appeal

You can appeal your cancellation, if there was a mistake on your driving record or an internal problem. Mistakes, esp. with a large insurance carrier do happen. But there must be an error. You are not going to change a mega insurers policy or their acceptable risk profile.

Don't appeal if you have tickets, accidents or some fraud was involved. If your driver's license is suspended or revoked, expect to get canceled. For profit car insurers are not typically run like the government, where there is rampant fraud and waste.

Acceptance

The goods news about being canceled, you get to go out and shop for auto insurance again! There are many companies out there competing for your business. Maybe your old carrier did turn into knuckleheads. You can appeal with the company or with your state department of insurance, but the fact remains, you still need coverage. Instead of appealing, why not spend that time shopping around? The company has already told you they do not want your business. There are some California Alternatives to car insurance but they are usually impractical and expensive compared to standard car insurance.

There are over 100 insurers in California waiting for a chance to earn your business. Get rates in the yellow box at the top.

Conclusion

If your policy is non renewed or canceled outright, don't blame others! But there is true error, then scream outrage. But most often, the company re examines their risk and things happen, tickets, accidents, etc. Good thing car insurers are made for dating, not marrying. Shop in the yellow box at the top and keep your chin up!

Written by Craig J. Casey

Financial Writer helping people with their insurance problems on the net since 1998.

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